Google Pressuring Developers

Google Inc has been leaning on applications and mobile game developers to use its more expensive in-house payment service, Google Wallet, as the Internet search giant tries to copy the financial success of Apple Inc’s iOS platform.

Google warned several developers in recent months that if they continued to use other payment methods – such as PayPal, Zong and Boku – their apps would be removed from Android Market, now known as Google Play, according to developers, executives and investors in mobile gaming and payment sectors.

Developers say the Internet search giant is trying to simplify consumer payments, hoping apps-buying will rise and offset their higher costs. Google’s payment service charges a higher cut per transaction than some rivals’. But the move also suggests Google is using its powerful position in the mobile apps market to promote an in-house offering.

“Although this move by Google might seem high-handed, it reduces the friction for purchases inside Android apps and therefore makes users more valuable,” said Hugo Troche, chief executive of Appsperse, a cross-promotion network for app discovery.

Android Market, or Google Play as it is now known, is the company’s answer to Apple’s apps store, where consumers browse and buy or download everything from games and music to individual software or applications. Google wants Google Wallet to be the dominant way that people pay for anything on this platform.

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Galaxy Nexus 4G LTE Finally On Sale

Verizon Wireless finally announced that the Samsung Galaxy Nexus smartphone running Android 4.0 on its 4G LTE network will be available on Thursday in stores and online for $299.99 with a two-year agreement.

The announcement, which came late Wednesday, arrived after days of speculation that the phone was being delayed over a dispute between the carrier and Google over the Google Wallet application, which doesn’t work on Verizon’s version.

During the period many expected Verizon to release the Galaxy Nexus, problems with the carrier’s LTE network arose for nearly two days, pushing LTE users to Verizon’s slower 3G service.

But Verizon never admitted there was any delay in releasing the device and pointed out that it had never given an official release date until Wednesday.

Verizon will carry a 4G LTE version that supports download speeds of up to 12Mbps. Online sales were set to start at 1 a.m. ET Thursday.

The new device has many features putting it at the top of the market for competing smartphones, including one of the highest prices: $299.99. Many rivals are priced at $200 or $250 on other U.S. carriers.

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